In final debate, Lazio criticizes Hillary Clinton's Arkansas 'record'

NEW YORK (CNN) -- Hillary Rodham Clinton's Arkansas past was Rep. Rick Lazio's target as the two New York Senate candidates debated for the third and final time Friday in an hour-long session that featured some of the strongest rhetoric of their campaign.

Clinton, the Democratic nominee for the position, and Lazio, the Republican, are vying to replace Sen. Daniel Patrick Moynihan in the U.S. Senate. Although Clinton did not serve in an elected office in Arkansas while her husband, President Clinton, served as the state's governor, Lazio attempted to tie her to what he said was her record there.

Arkansas schools were "at the bottom of the barrel" when Hillary Clinton left Arkansas for Washington, Lazio said. That caused her to respond, "I'm not here to defend Arkansas. I'm here to run for the Senate to represent New York."

"But that's your record," responded Lazio.

The debate, taped Friday afternoon, was carried Friday night by NBC affiliates across the state. It was moderated by longtime New York television journalist Gabe Pressman.

He struggled to keep a civil tone in the debate, at one point even shouting, "Order, order, the speaker wants order," as Clinton and Lazio disagreed over taxpayer-funded vouchers for private schools.

Health care, tensions in the Middle East, local issues, abortion and other topics also were raised in the debate.

Lazio's aggressiveness on some issues carried a risk. In the first debate between the two in September, Lazio crossed the stage between their two podiums and challenged Clinton to sign a pledge to remove so-called "soft money" spending from the campaign -- money spent by issue-oriented groups, which is not regulated by campaign finance laws.

VIDEO Hillary Rodham Clinton and Rep. Rick Lazio (R-New York) debate their positions on the Mideast (October 27, courtesy of WNBC) Play video (QuickTime, Real or Windows Media)

Although Clinton and Lazio eventually reached an agreement on the issue in weeks following the debate, deciding to ask groups to pull back on their soft money spending, Lazio fell slightly behind Clinton in the polls immediately after the debate and still trails in most surveys. The image of Lazio crossing the stage and waving the pledge at Clinton was replayed again and again on local and national television newscasts.

The staging at Friday's debate discouraged such theatrics. Both candidates sat at a round table, with Pressman between them in a television studio with no audience. But talk-show-style set didn't cause the candidates to tone down their occasional stridency.

Lazio challenged Clinton for statements in 1998 in which she appeared to back a Palestinian state -- a touchy subject given the state of Middle East affairs and the large Jewish vote in New York. "For eight years, I have been consistent and strong in support for the security of the state of Israel without a question mark next to my name," said Lazio.

"There is no question mark next to me. There's an exclamation point," Clinton responded. "I'm an emphatic, unwavering supporter of Israel's safety."

In another tense moment, Clinton accused Lazio of taking money from the housing industry and supporting legislation to ease protections for homebuyers.

"One thing I will not tolerate and that's being dragged down into the mud," he replied. "My reputation is impeccable. My integrity is impeccable."

Clinton, who did not live in New York until last year, assured Pressman she was a New Yorker for good. "I will live in New York after I win. I will live in New York for the rest of my life," she said.

"I was born here, I've lived here my entire life, all of my friends and family are here, my home is here," said Lazio. "You can rest assured, no matter what happens in this election, if you check on me a year from now, we're going to still be living on Windsor Avenue in Brightwaters, as we have been for the last 10 years."

In one of the debate's odder moments, Pressman asked the two to name three things they liked about each other. "It seems like he has a very nice family -- he has, you know, worked very hard and that, you know, he's an attractive young man," said Clinton of Lazio.

"You're an attractive woman; you have a very nice family. I'm sure you're a very good mother as well," Lazio said of Clinton.

The debate came as the campaigns unveiled their latest financial reports. Clinton reported having less than $472,000 on hand as of Oct. 18, while Lazio reported $1.8 million.

For the period Oct. 1-18, Lazio reported raising $3.9 million and spending $8.7 million. The first lady said her campaign raised $1.5 million and spent $4 million.

The Associated Press contributed to this report.